We bought a home that was involved in a similar suit about water logging, drainage and resultant differential settlement (of soil) issues. We were given a few microfilm reels of legal paperwork during disclosure (the litigation happened in the ’80s). Being a nerd, I even went to a library and read some of the microfilms and concluded most of the issues litigated were fairly minor. The seller got an award and used it to put some french drains. When we sold the house, we disclosed and handed over the microfilm reels (not sure if the buyers understood what to do with them; This was in 2005, when microfilm was obsolete).
The important thing is, our agent asked us if there was any lawsuit regarding our property and wanted enough information so that we were all on safe ground with respect to disclosure.
